10/22/2013

Employers can push back against "aggressive pricing" by health care providers by using a strategy referred to as reference pricing to set limits on what they are willing to pay for certain procedures and medications, writes James Robinson, a professor of health economics at the University of California. The California Public Employees Retirement System implemented reference pricing for hip and knee surgeries in 2010 and saw an immediate increase in the percentage of employees using low-priced hospitals, Robinson writes.

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